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Wednesday 24 December 2014

Sensex falls 100 pts; Opto Circuits, Max India in focus

12:40pm Interview

As expected the Cabinet has approved ordinance on Insurance and Coal. With Coal Mines Bill yet to be cleared by the Parliament, the government re-promulgated the ordinance.

Earlier, an ordinance on coal was introduced on October 20 after the Supreme Court scrapped over 200 coal block allocations. It was valid till January 4 as the life-span of an ordinance is only six weeks since the inception of a Parliament session.

Reacting to the news, Rajesh Sud, MD & CEO of Max Life Insurance says the ordinances indicate firm resolve on the government's part. However, foreign investors will view this tentatively until a Bill is passed, he adds. An ordinance is an interim measure, a statement of intent on the part of the government. The government has six weeks after an ordinance is passed to get approval from both the houses and pass the Bill or let it lapse - after the first sitting of the Parliament.

Sud believes that the domestic ownership clause in the insurance bill will have only company-specific ramifications.

The Cabinet has also cleared formula for coal block auction floor/ reserve price. The first tranche of bid documents on coal block auction will be released on December 27.

12:20pm Nikkei Update

Japanese stocks rallied today after Wall Street hit a record closing-high on the back of data pointing to rapid momentum in the US economy, which boosted risk appetite and lent weight to last week's positive assessment by the Federal Reserve.

The Nikkei benchmark gained 1.2 percent in thin trade to 17,854.23, its highest close since Dec. 8 and its fifth straight day of gains. Japanese markets were closed on Tuesday for a public holiday.

Exporters performed strongly on the back of a weaker yen, which fell through the 120 mark against the dollar. Toyota Motor Corp gained 1.6 percent, while Panasonic added 1.5 percent.

The broader Topix added 0.9 percent to 1,426.02, while the JPX-Nikkei Index 400 also gained 0.9 percent to 12,955.65, reports Reuters.

12:00pm Market Check

Equity benchmarks extended fall in noon trade weighed by HDFC twins, oil & gas, capital goods and healthcare stocks. The Sensex fell 113.25 points to 27393.21 and the Nifty declined 31.70 points to 8235.30.

About 1114 shares have advanced, 1284 shares declined, and 105 shares are unchanged on the Bombay Stock Exchange.

Medical equipment maker Opto Circuits surged 16 percent after the Cabinet has approved 100 percent foreign direct investment in medical devices.

Max India and Reliance Capital gained 3-4 percent as Cabinet has approved ordinance on insurance today along with ordinance on coal. More information please visit this site www.bigprofitbuzz.com

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